Exercise 6-13A (Algo) Outsourcing decision affected by opportunity costs LO 6-3 Zachary Electronics currently produces...
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Exercise 6-13A (Algo) Outsourcing decision affected by opportunity costs LO 6-3 Zachary Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Zachary for $2.60 each. Required a. Calculate the total relevant cost. Should Zachary continue to make the containers? b. Zachary could lease the space it currently uses in the manufacturing process. If leasing would produce $11,900 per month, calculate the total avoidable costs. Should Zachary continue to make the containers
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